An Auditor Should Recognize That the Application of Auditing Procedures

question 150

Multiple Choice

An auditor should recognize that the application of auditing procedures may produce evidence indicating the possibility of errors of fraud and therefore should

• A) plan and perform the engagement with an attitude of professional skepticism.
• B) not rely on internal controls that are designed to prevent or detect errors or fraud.
• C) design audit tests to detect unrecorded transactions.
• D) extend the work to audit the majority of the recorded transactions and records of an entity.

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Definitions:

Salts

Ionic compounds resulting from the neutralization reaction of an acid and a base, consisting of cations (other than H+) and anions (other than OH-).

Water

A transparent, tasteless, odorless, and nearly colorless chemical substance which is the main constituent of Earth's hydrosphere, and the fluids of all known living organisms.

Mass Number

Of an isotope, the total number of protons and neutrons in the atomic nucleus.

Neutrons

Particles in an atom with no electrical charge, found in the nucleus alongside protons.